Main Street Health Report
February 2026
Labor and wage stats
Every month we measure how small businesses are actually doing, from the timesheets of more than 100,000 of them: who is working, how many hours, what they are paid, and how that compares with the same month in previous years.
Employees Working dipped just -0.1% in February, improving from 2025’s -1.4% decline but still trailing 2024’s +2.1% expansion. The labor market is stabilizing at a structurally lower level rather than returning to prior-year growth.
- Hourly employees
- 2M+
- Small businesses
- 100K+
- Measured, not surveyed
- Timesheet data
Hourly employees
Small businesses
Measured, not surveyed
Main Street at a glance
The top things to know this month
-0.1%
Employees Working dipped just -0.1% in February, improving from 2025’s -1.4% decline but still trailing 2024’s +2.1% expansion. The labor market is stabilizing at a structurally lower level rather than returning to prior-year growth.
+0.6%
Pace Hours Worked rose +0.6% m/m, reversing 2025’s -2.8% drop but far below 2024’s +5.5% surge. Businesses are extending shifts cautiously, signaling maintenance scheduling rather than confident ramp-up.
-1.4%
All five regions saw m/m declines in Businesses Open, led by the West (-1.4%) and Southeast/Southwest (-1.3%). The Midwest stood out with gains in Hours Worked (+1.4%) and Employees Working (+0.6%), pointing to consolidation among surviving firms rather than broad expansion.
What the data shows
Each finding below takes one measure of Main Street, participation, hours, wages, hiring and turnover, and compares February 2026 with the same month in the two years before it. Every chart is drawn from the figures, which are published alongside it for anyone who wants to check or reuse them.
Employees Working
Workforce Participation Eases but Falls Short of 2024 Recovery
Employees Working dipped just -0.1% in February, improving from 2025’s -1.4% decline but still trailing 2024’s +2.1% expansion. The labor market is stabilizing at a structurally lower level rather than returning to prior-year growth.
(Monthly change in 7-day average of “Employees Working”, relative to January of respective year)
| Category | 2024 | 2025 | 2026 |
|---|---|---|---|
| Jan – Feb | 2.1% | (1.4%) | 0.0% |
Hours Worked
Hours Worked Rebound Modestly, Lag Prior Year Expansion Pace
Hours Worked rose +0.6% m/m, reversing 2025’s -2.8% drop but far below 2024’s +5.5% surge. Businesses are extending shifts cautiously, signaling maintenance scheduling rather than confident ramp-up.
(Monthly change in 7-day average of “Hours Worked”, relative to January of respective year)
| Category | 2024 | 2025 | 2026 |
|---|---|---|---|
| Jan – Feb | 2.7% | (1.4%) | 0.7% |
Homebase data, by region
Business Openings Decline Nationwide as Midwest Diverges
All five regions saw m/m declines in Businesses Open, led by the West (-1.4%) and Southeast/Southwest (-1.3%). The Midwest stood out with gains in Hours Worked (+1.4%) and Employees Working (+0.6%), pointing to consolidation among surviving firms rather than broad expansion.
(Month-over-month change in core economic indicators, by Census region)
| Region | 2024 | 2025 | 2026 |
|---|---|---|---|
| Midwest | +2.9% | −2.5% | −0.3% |
| Northeast | −0.6% | −1.6% | −1.0% |
| Southeast | 0.0% | −0.9% | −1.2% |
| Southwest | −1.8% | −1.9% | −1.2% |
| West | −0.7% | −1.4% | −1.3% |
| Mid-Atlantic | +0.2% | −4.4% | −1.4% |
| Other | +0.9% | −1.0% | −0.1% |
Region classification - Midwest: ND, SD, NE, KS, MN, IA, MO, WI, IL, IN, OH, MI; West: NV, UT, AZ, NM, CO, WY, MT, ID, OR, WA,
Employees Working
Hospitality Leads as Home & Repair Deepens Its Decline
Hospitality posted the strongest workforce gain at +2.3% m/m, outpacing +1.0% in February 2025, while Home & Repair (-3.5%), Medical/Veterinary (-1.7%), and Beauty & Wellness (-1.3%) all fell, while rest of the industries showed flat m/m trend.
(Monthly change in 7-day average of “Employees Working”, relative to January of respective year)
| Category | 2024 | 2025 | 2026 |
|---|---|---|---|
| Jan – Feb | 2.1% | (1.4%) | 0.0% |
Entertainment includes events/festivals, sports/recreation, parks, movie theaters, and other categories.
Hourly Wages
Wages Accelerate Despite Flat Workforce Growth
Hourly wages climbed +1.3% m/m, reaching +45.8% above January 2022 levels, well ahead of workforce and business activity trends. Labor costs continue rising even as small business expansion stalls.
(Percent change in average “Hourly Wages” across all jobs, relative to January 2022)
| Period | All industries |
|---|---|
| Point 1 | 1.3% |
| Point 2 | 1.1% |
| Point 3 | 2.7% |
| Point 4 | 3.3% |
| Point 5 | 3.7% |
| Point 6 | 4.4% |
| Point 7 | 5.1% |
| Point 8 | 6.0% |
| Point 9 | 7.3% |
| Point 10 | 7.7% |
| Point 11 | 9.4% |
| Jan'23 | 11.8% |
| Point 13 | 13.4% |
| Point 14 | 13.5% |
| Point 15 | 14.1% |
| Point 16 | 15.0% |
| Point 17 | 15.7% |
| Point 18 | 16.6% |
| Point 19 | 16.7% |
| Point 20 | 18.5% |
| Point 21 | 19.8% |
| Point 22 | 21.2% |
| Point 23 | 22.2% |
| Jan'24 | 24.7% |
| Point 25 | 25.9% |
| Point 26 | 25.8% |
| Point 27 | 26.5% |
| Point 28 | 26.9% |
| Point 29 | 27.5% |
| Point 30 | 27.9% |
| Point 31 | 28.5% |
| Point 32 | 29.3% |
| Point 33 | 29.8% |
| Point 34 | 30.9% |
| Point 35 | 31.4% |
| Jan'25 | 33.7% |
| Point 37 | 35.6% |
| Point 38 | 35.8% |
| Point 39 | 35.9% |
| Point 40 | 35.9% |
| Point 41 | 36.6% |
| Point 42 | 37.5% |
| Point 43 | 37.3% |
| Point 44 | 38.8% |
| Point 45 | 40.1% |
| Point 46 | 40.8% |
| Point 47 | 41.6% |
| Jan'26 | 42.6% |
| Feb'26 | 43.5% |
Hourly Wages
Health Care and Professional Services Pull Ahead on Pay
Health Care wages reached $20.61 and Professional Services $18.42, widening the gap with Food & Drink ($14.00). Sectoral wage stratification deepens as higher-skill industries outpace leisure and retail pay growth.
(Average “Hourly Wages” across all jobs)
| Category | February 2026 |
|---|---|
| Food & Drink | $13.90 |
| Entertainment | $14.68 |
| Retail | $15.65 |
| Health Care | $20.32 |
| Professional Services | $17.83 |
Number of Jobs Added
Hiring Tracks 2025 Pattern, Shows No Spring Acceleration
Jobs added rose +3.6% in February, below 2024’s +4.7% pace and closely mirroring 2025’s pattern. Businesses appear to be maintaining headcount rather than expanding ahead of peak season.
(Monthly change in average “Number of Jobs Added” across all jobs)
| Category | 2024 | 2025 | 2026 |
|---|---|---|---|
| Jan – Feb | 3.1% | 5.0% | 3.8% |
Number of Jobs Archived
Turnover Falls to Three-Year February Low
Jobs Archived declined (-3.9%) m/m in February, below the near-flat readings of 2025 (+0.4%) and 2024 (-1.7%), suggesting businesses are retaining headcount and stabilizing rosters post holiday.
(Monthly change in average “Number of Jobs Archived” across all jobs)
| Category | 2024 | 2025 | 2026 |
|---|---|---|---|
| Jan – Feb | (1.7%) | 0.4% | (3.4%) |
How we measure Main Street
The dataset is based on Homebase data gathered from more than 100,000 businesses and 2 million hourly employees active in the US on our platform, one of the largest and most trusted sources of real-time data on employment growth across the small business landscape.
Data from prior years uses similar cohort-based logic. Unless indicated otherwise, daily figures are calculated relative to the median value for that specific day for the baseline month, net of the first four days of the month.
Every chart on this page is drawn from the underlying figures rather than copied from the PDF. Those figures come from the same model the report is built on, which is refreshed each month as more timesheets land, so a value here may differ slightly from the one printed in the original slide. The PDF stays available above as published.
If you use any content from this report, please include a link to joinhomebase.com.
Measured from timesheets, not surveys
- Hourly employees
- 2M+
- Small businesses
- 100K+
Hourly employees
Small businesses
- Hours worked
Calculated from hours recorded in Homebase timecards.
- Businesses open
Based on whether a business had at least one employee clock-in.
- Employees working
The distinct number of hourly workers with at least one clock-in.
- Wage inflation
The monthly change in average hourly wages at businesses that ran Payroll with Homebase in March 2026 and March 2025.
The story behind the numbers
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Every month the team writes up what these figures mean for the people running the businesses behind them: what changed, what it costs, and what to do about it.
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